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CentraState Healthcare System and Atlantic Health System Announce Expanded Partnership

October 21, 2020

Systems reach Definitive Agreement to build upon successful clinical affiliation

MORRISTOWN / FREEHOLD TOWNSHIP, NJ – October 21, 2020 – Proving their shared history of collaboration and aligned mission can quickly deliver meaningful results for the communities they serve, CentraState Healthcare System and Atlantic Health System have reached a Definitive Agreement to expand their partnership to create a unique model for health system co-ownership. Coming only weeks after declaring their intent to strengthen their relationship to improve the health of residents across northern and central New Jersey, Atlantic Health will become the majority corporate member in CentraState and CentraState will join the Atlantic Health System network of care upon receipt of state and federal regulatory approval.

The partnership will deliver immediate benefits to patients, physicians and caregivers in CentraState’s communities by strengthening its integrated clinical services, physician network and infrastructure through a capital investment of $135 million, outlined in a five-year plan endorsed by both systems’ boards. The new model for partnership will provide CentraState with significant resources to support its longstanding community focus while advancing Atlantic Health’s mission to touch more lives in New Jersey through collaborations for high-quality, value-based care. The CentraState board and leadership team, led by President and CEO John T. Gribbin, will continue to oversee system operations at CentraState and ensure the continued advancement of its mission to enhance health and well-being in its local community through the compassionate delivery of quality health care.

“We are excited to deliver our shared mission of advancing the health of our communities, and confident this innovative partnership positions both organizations for continued success and growth,” said John T. Gribbin, President and CEO, CentraState Healthcare System.

One of the first steps the two organizations will take will be investing in and implementing the Epic electronic health record (EHR) platform across CentraState Healthcare System. Beginning at CentraState physician practices before extending throughout the system, Epic will improve efficiency and safety in care delivery, by providing physicians with a patient’s full and up-to-date medical record. Once complete, CentraState will join Atlantic Health System on Epic, allowing physicians and patients the opportunity to share information throughout the network. No matter where a patient receives care, their medical information will seamlessly travel with them, easily accessible through the MyChart patient portal.

With this newly expanded partnership come new opportunities for physicians in the CentraState network. Atlantic Health System will provide CentraState physicians with the opportunity to participate in its affiliated physician group practices and programs, including risk-based contracting initiatives, which have already delivered better health care results for patients and proven savings.

CentraState patients will immediately benefit from cutting-edge data analytics capabilities. Based on the clinical experiences from Atlantic Health System’s interactions with nearly one million unique individuals over the last year, these data tools allow caregivers to make more efficient, informed decisions that result in improved outcomes and reduced cost, as evidenced by the success of the Atlantic accountable care organizations (ACOs). These resources will also accelerate CentraState’s journey from a fee-for-service model of contracting to value-based care.

Focused on the future success of both organizations, the terms of the Definitive Agreement allow the two organizations to pursue joint venture opportunities, including ambulatory services and other population health strategies, which will make care more accessible, affordable and convenient for residents in the communities served by CentraState.

“The swift progress we have made with CentraState on this latest partnership shows how effective we can be together in delivering innovative and high-quality care for New Jersey’s residents and families,” said Brian Gragnolati, President and CEO, Atlantic Health System. “I am thrilled to see all that we can accomplish when we work together to put patients first.”

This latest venture between two of the state’s leading health systems is a clear reflection of their shared mission and values. Both are grounded by strong ties to their local communities, along with longstanding commitments to clinical excellence, engaged physician leadership, and value-based strategies to improve access to high quality, affordable health care. Both systems also take great pride in their exceptional workplace cultures that value the contributions of every team member while promoting award-winning innovation and compassionate care.

Both organizations will continue working toward obtaining the necessary government approvals for the transaction. Approvals will be necessary from state and federal officials before the transaction can be considered complete.

About CentraState Healthcare System:

CentraState Healthcare System is a fully accredited, not-for-profit, community-based health system that provides comprehensive health services in the central New Jersey region. In addition to offering a full range of leading-edge diagnostic and treatment options, CentraState serves as a valuable health partner focused on the latest ways to prevent disease, promote healthy behaviors, and help people of all ages live life well. Based in Freehold, CentraState is comprised of a 284-bed acute-care hospital, a vibrant health and wellness campus, three award-winning senior living communities, a charitable foundation, and four convenient satellite health pavilions. The system also offers a family medicine residency and geriatric fellowship training program in affiliation with Rutgers Robert Wood Johnson Medical School. Among its many honors and accreditations, CentraState is one of only 2 percent of hospitals nationwide to earn Magnet® designation for nursing excellence four times. To learn more, visit

About Atlantic Health System

Atlantic Health System is at the forefront of medicine, setting standards for quality health care in New Jersey, Pennsylvania and the New York metropolitan area. Powered by a workforce of almost 17,000 team members and 4,800 affiliated physicians dedicated to building healthier communities, Atlantic Health System serves more than half of the state of New Jersey including 11 counties and 4.9 million people. The system offers more than 400 sites of care, including seven hospitals: Morristown Medical Center in Morristown, NJ, Overlook Medical Center in Summit, NJ, Newton Medical Center in Newton NJ, Chilton Medical Center in Pompton Plains, NJ, Hackettstown Medical Center in Hackettstown, NJ, Goryeb Children’s Hospital in Morristown, NJ, and Atlantic Rehabilitation Institute in Madison, NJ.

Atlantic Medical Group, comprised of 1,000 physicians and advanced practice providers, represents one of the largest multi-specialty practices in New Jersey and joins Atlantic Accountable Care Organization and Optimus Healthcare Partners as part of Atlantic Alliance, a Clinically Integrated Network of more than 2,500 health care providers throughout northern and central NJ.

Atlantic Health System provides care for the full continuum of health care needs through 16 urgent care centers, Atlantic Visiting Nurse and Atlantic Anywhere’s Virtual Visits. Facilitating the connection between these services on both land and air is the transportation fleet of Atlantic Mobile Health.

Atlantic Health System leads the Healthcare Transformation Consortium, a partnership of seven regional hospitals and health systems dedicated to improving access and affordability and is a founding member of the PIER Consortium – Partners in Innovation, Education, and Research – a streamlined clinical trial system that will expand access to groundbreaking research across seven health systems in New Jersey.

Atlantic Health System has a medical school affiliation with Thomas Jefferson University and is home to the regional campus of the Sidney Kimmel Medical College at Morristown and Overlook Medical Centers and is the official health care partner of the New York Jets.